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									Top Ten Questions Every Laboratory Testing
    Executive Should Be Able to Answer

          Brad Dawson, LTV Dynamics
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       Learning Objectives

1.   You will learn the top ten questions every laboratory
     testing executive should be able to answer;
2.   You will learn the “right” answers to these questions
     in both a normal economy and a recessionary
     situation;
3.   You will be able to immediately implement at least 3
     tactics into your business at the end of this
     presentation!
Are You Winning the Sales War?
Current Condition


                    Will you win at least
                     80% of your current
                          proposals?
                      Current Condition




Besides low price, how do
     you expect to win?
                         Current Condition
Are you reacting to the market or do you
        have a proactive strategy?
             #1 What Do You Do Best?




Best is defined as
  those customer
   activities that
      have been
     successful
#1 What Do You Do Best?


                 Mature business owners
                  evolve through markets
                    over time based on
                   market conditions and
                            luck
#1 What Do You Do Best?


              If you don’t believe you are the
                   best, why would anyone
                        buy from you?
           Recessionary Reality #1


Now is the very best time to explore becoming “best” in a new
                       venture or offering.
 Chaos breeds opportunity and, oh boy, do we have economic
                              chaos.
     #2 Why Do Customers Buy From You?


The reason a customer buys from
   you typically comes down to
    one of three things: increase
     revenues, decrease costs,
            mitigate risks
#2 Why Do Customers Buy From You?



                 Independent (external) assessment
                     may allow for greater market
                      credibility – more revenue
  #2 Why Do Customers Buy From You?



Outsourcing of testing
 functions may reduce
  the cost of customer
       operations
#2 Why Do Customers Buy From You?

   Obviously, the primary objective of testing is to mitigate
                         potential risk
           Recessionary Reality #2


Ask your customers why they are buying your services – after,
                of course, they have paid their bill.
Their insights may be a great way to sell your services to your
                       next new customer!
       #3 What is the Value of Your Portfolio?




Do you rely on the customer asking you for what
    they want or do you anticipate their needs?
    #3 What is the Value of Your Portfolio?




What can you sell to your existing customers that
precludes your competition from gaining a foothold?
#3 What is the Value of Your Portfolio?

                           What is the value of all
                               your offerings?
          Recessionary Reality #3


 Look at building the diversity of your offerings portfolio.
The goal is to keep existing customers happy – even when it
      means going outside your previous comfort zone.
             Nothing ventured, nothing gained!
#4 What is Your Revenue Per Customer
               Metric?


                        You have 3 types of
                              offerings:
                            assessments,
                         implementation and
                            maintenance.
      #4 What is Your Revenue Per Customer
                     Metric?
Rule of thumb: you should
      be able to grow a
  customer relationship to
     be worth 10X your
         initial project
    #4 What is Your Revenue Per Customer
                   Metric?




Or, the value of your AIM
          portfolio!
          Recessionary Reality #4


Identify services that will double the value of your revenue
   per customer metric through exploring partnerships with
                       trusted businesses.
Use these relationships to leverage more revenues from your
   customers and gaining new customers from your trusted
                             partner
#5 What % of portfolio is sold to every
             customer?


                      On average, you are
                       probably only selling
                         6% of your total
                         portfolio to every
                             customer
 #5 What % of portfolio is sold to every
              customer?
In a normal
   economy, I
    would tell
 you to reduce
 the number of
  customers –
    as 80% of
   sales comes
  from 20% of
    customers
#5 What % of portfolio is sold to every
             customer?




Not being normal times, look for unique ways
             to “service” the asset
         Recessionary Reality #5


       The asset is the customer’s item to be tested.
Identify ways to leverage the asset – as the customer may
                       change over time
#6 Who is Your Customer?

                 Your customer may have
                    changed over the last
                       several months
                  #6 Who is Your Customer?

In an aggressive bid
    environment, the
    customer is clear
       – so is the
      competition
   #6 Who is Your Customer?




Is it worthwhile to “give away” services to
       obtain the customer relationship?
        Recessionary Reality #6


The objective for 2009 is to build your customer base –
 assuming you can absorb the cost of providing services at
                        a discount.
This approach ensures you are perfectly placed when the
                      recession ebbs
#7 Can You Define Your Ideal Customer?

                     “Ideal” is defined as the entity
                        that will buy at least 80% of
                           your services portfolio
  #7 Can You Define Your Ideal Customer?

 Identify those
     common
characteristics that
make-up your 5-10
  best customers
#7 Can You Define Your Ideal Customer?




   Aggressively acquire and retain these types of
                   ideal customers
           Recessionary Reality #7


Acquiring customers through traditional channels may be time
      and cost-prohibitive during this recessionary period.
 Look at partnering with firms that maintain a customer base
   that meets your ideal requirements and seek ways to share
                      customer revenues.
#8 How Long is Your Current Sales Cycle?

                       By the time an open RFP hits the
                            streets it has already been
                             informally competed by
                                   several firms
#8 How Long is Your Current Sales Cycle?

 What changes are
   occurring in your
industry that make the
  future uncertain for
    your customers?
#8 How Long is Your Current Sales Cycle?




 Are there maintenance and assessment projects that
      you can provide to your customer base now?
          Recessionary Reality #8


Smaller firms may want to find teaming partners to decrease
                sales cycle for new customers.
Use AfA contact networks and programs to establish face-to-
                    face partnerships now.
#9 Who Owns the Customer Relationship?

                           Often there is confusion
                                   as to who is
                                responsible for the
                                    continuous
                               interaction with the
                                     customer
#9 Who Owns the Customer Relationship?
Too often, customers are forgotten after an activity is
 completed and never really leveraged for future work
      #9 Who Owns the Customer Relationship?




Train your customer-facing personnel to identify
    potential opportunities while on site with a
     customer and seek initial ways to “sell the
                      work”.
           Recessionary Reality #9


With the slow-down in work, aggressively seek to up sell your
                           services.
 Fewer customers will want the services making the process
     even more like looking for a needle in a haystack – but
                           persevere
    #10 Have you ever lost a deal on price?

If you have ever lost a deal on price – congratulations!
#10 Have you ever lost a deal on price?

                      Real customers evaluate quality,
                      experience and proven capabilities
                             to minimize their risk
        #10 Have you ever lost a deal on price?




Realize that profits may need
    to “dip” and you should
  aggressively be seeking to
    reduce your overhead –
  but rarely is there value to
  sell your services at a loss!
          Recessionary Reality #10


The exception to the sell at a loss rule is when the opportunity
      provides a strategic value to your firm (i.e., marquee
                             customer)
 Realize that most customers brought on at a discounted rate,
               expect that rate to continue forever!
     March 26th Session


“Double Your Revenue Without
  Adding One New Customer”
Thank You!


    Contact Information:

       Brad Dawson
      LTV Dynamics
      703-753-2886
BLDawson@LTVdynamics.com

								
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